Washington Mutual (WM) was taken over by J.P. Morgan Chase. "Regulators were hoping to fend off a collapse of WM, which, with more than $300 billion in assets, would mark by far the largest banking failure in U.S. history." Just over a year ago, WM was selling for $41, today WM closed at $.45, a decline of 99%. Oh, how the mighty fall.
J.P. Morgan will get Washington Mutual's deposits and branches. The deal isn't expected to result in a hit to FDIC, the bank-insurance deposit fund, according to a person familiar with the arrangement. However, it's likely that another arm of government would have to pick up the tab problem close to $20 billion. So what else is new!
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